UPDATE
Shareholder Update
LDM Chile to Medinah Minerals, Inc.
Progress Update on Gold Shaft
April 8, 2014
LDM Chile to Medinah Minerals, Inc.
Progress Update on Gold Shaft
April 8, 2014
LDM Chile Progress Report to Medinah Minerals, Inc.
We are pleased to report that after several months of tunneling efforts, work in the shaft toward the high-grade, gold-bearing drill intersected zone DDH-002, has reached the target. The mineralization encountered changed significantly at the 66.5 meter top of the high-grade target and progressed downward to 70 meters. The shaft work has been difficult, requiring much extra cribbing and support infrastructure to avoid cave-ins, and to pump out the considerable amount of waste water for disposal.
The majority of this formation appears to have been affected by a porphyry intrusive and fault that have broken and fractured the host rock. This, however, has also injected mineralized fluids into what is indicated to be existing gold-bearing quartz structures.
Previously, the mineralization noted at DDH-001, where the adit intersected this drill hole, confirmed the assay grades of gold received from the drill core samples. Those were ranging from 2-12 grams of gold per tonne. Similar assays from the DDH-002 shaft at the 53 meter mark confirmed similar grades across the 1.5 meter width of the vein.
We have entered the targeted high-grade zone intersected by DDH-002 that originally returned drill core assays ranging between 75 to 470 grams of gold per tonne over 2 meters wide starting at the 70 meter depth, and continuing downward. The vertical shaft penetrated multi-fractured zones of darkish, quartz and country rock mixed with sulphides and some visible gold. This section expanded to 3+ meters in width and is being professionally sampled by our geologist at different elevation levels.
Just below the described zone, crews have opened up the discovery area under DDH-002 and noted highly fractured quartz/ porphyritic material. Visible gold was readily seen in this section that is expanding beyond the 3x4 meter size of the shaft. The porphyry material shows gold mineralization with no indication of copper. This requires serious investigation as it may indicate a new porphyry intrusive separate from the known copper/gold porphyry identified earlier. Due to the nature of these exciting findings LDM Chile Company has now enlisted round the clock security guards on-site.
As we confirm grades, shipping of the high-grade material will commence promptly to the nearest Enami refinery for processing.
LDM Chile Company will provide further reports including certified assay results as they become available.
Juan José Quijano Fernández
Compañia Minera LDM Chile
